A new study has found that record numbers of people are starting new businesses, with an increasing number of women and minorities taking the leap into entrepreneurship. Business applications soared in 2020 at the start of the pandemic and have continued to be filed at a record pace. In 2021 and 2022, over 5 million new business applications were filed, and in 2023, a record 5.5 million new business applications were submitted. This trend indicates a growing entrepreneurial spirit among people from diverse backgrounds.
According to a survey by payroll firm Gusto, 49% of new small business owners in 2023 were women. This percentage has seen a significant increase from 2019, when only 29% of new business owners were women. Despite the rise in female entrepreneurship, women still face challenges when it comes to securing investments for their businesses. In 2023, only 3% of women entrepreneurs received private capital investments, compared to 9% of male entrepreneurs.
Black entrepreneurs accounted for 6% of new business owners in 2023, doubling the pre-pandemic rate of 3%. Hispanic entrepreneurs also saw an increase, making up 13% of new business owners in 2023, up from 8% the previous year. These statistics demonstrate a more inclusive landscape in the entrepreneurial world.
Another noteworthy trend is the rise of “side hustle” entrepreneurs—those who start businesses in addition to their day jobs. In 2023, 44% of new business owners started their businesses while working another job, either part-time or full-time. This is a significant increase from 27% in 2022, showing that more people are exploring entrepreneurship while balancing other commitments.